Press Release
Civeo Completes Spin-Off From Oil States and Announces First Quarter 2014 Earnings
06/17/14
The Company reported net income for the quarter ended
The Company generated revenues of
BUSINESS SEGMENT RESULTS
(Unless otherwise noted, the following discussion compares the quarterly results for the first quarter of 2014 to the results for the first quarter of 2013.)
The Canadian segment generated revenues of
The Australian segment generated revenues of
U.S.
The U.S. segment generated revenues of
INCOME TAXES
The Company recognized an effective tax rate of 25.2% in the first quarter of 2014 compared to 24.3% in the first quarter of 2013. The increase in the effective tax rate from the prior year was largely the result of a change in the earnings mix between different tax jurisdictions. The effective tax rates are lower than U.S. statutory rates because of lower foreign income tax rates.
FINANCIAL CONDITION
The Company invested
ABOUT
FORWARD LOOKING STATEMENTS
The foregoing contains forward-looking statements within the meaning of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that do not state historical facts and are, therefore, inherently subject to risks and uncertainties. The forward-looking statements included herein are based on then current expectations and entail various risks and uncertainties that could cause actual results to differ materially from those forward-looking statements. Such risks and uncertainties include, among other things, risks associated with the general nature of the accommodations industry and other factors discussed in the "Business" and "Risk Factors" sections of the amended Form 10 filed by
UNAUDITED COMBINED STATEMENTS OF INCOME (In Thousands) |
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THREE MONTHS ENDED | ||
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2014 | 2013 | |
Revenues: | ||
Service and other | $ 238,858 | $ 289,038 |
Product | 13,941 | 5,500 |
252,799 | 294,538 | |
Costs and expenses: | ||
Service and other costs | 131,378 | 146,960 |
Product costs | 12,132 | 3,488 |
Selling, general and administrative expenses | 16,718 | 16,267 |
Depreciation and amortization expense | 39,599 | 41,088 |
Other operating expense (income) | 112 | (4,026) |
199,939 | 203,777 | |
Operating income | 52,860 | 90,761 |
Interest expense to affiliates | (4,289) | (4,816) |
Interest expense to third-parties, net of capitalized interest | (841) | (2,165) |
Interest income | 939 | 572 |
Other income | 238 | 410 |
Income before income taxes | 48,907 | 84,762 |
Income tax provision | (12,311) | (20,572) |
Net income | 36,596 | 64,190 |
Less: Net income attributable to noncontrolling interest | 357 | 378 |
Net income attributable to |
$ 36,239 | $ 63,812 |
COMBINED BALANCE SHEETS (In Thousands) |
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ASSETS | 2014 | 2013 |
(UNAUDITED) | ||
Current assets: | ||
Cash and cash equivalents | $ 264,751 | $ 224,128 |
Accounts receivable, net | 182,210 | 177,845 |
Inventories | 22,743 | 29,815 |
Prepaid expenses and other current assets | 11,985 | 7,956 |
Total current assets | 481,689 | 439,744 |
Property, plant and equipment, net | 1,350,869 | 1,325,867 |
Goodwill, net | 267,458 | 261,056 |
Other intangible assets, net | 76,587 | 75,675 |
Other noncurrent assets | 20,242 | 20,895 |
Total assets | $ 2,196,845 | $ 2,123,237 |
LIABILITIES AND NET INVESTMENT | ||
Current liabilities: | ||
Accounts payable | $ 54,814 | $ 45,376 |
Accrued liabilities | 25,564 | 26,874 |
Income taxes | 1,280 | 2,761 |
Deferred revenue | 20,682 | 19,571 |
Other current liabilities | 4,934 | 2,470 |
Total current liabilities | 107,274 | 97,052 |
Long-term debt to affiliates | 322,515 | 335,171 |
Deferred income taxes | 81,316 | 79,739 |
Other noncurrent liabilities | 20,515 | 18,530 |
Total liabilities | 531,620 | 530,492 |
Net investment: | ||
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1,710,123 | 1,651,013 |
Accumulated other comprehensive loss | (46,901) | (59,979) |
Total |
1,663,222 | 1,591,034 |
Noncontrolling interest | 2,003 | 1,711 |
Total net investment | 1,665,225 | 1,592,745 |
Total liabilities and net investment | $ 2,196,845 | $ 2,123,237 |
UNAUDITED CONDENSED COMBINED STATEMENTS OF CASH FLOWS (In Thousands) |
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THREE MONTHS ENDED |
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2014 | 2013 | |
Cash flows from operating activities: | ||
Net income | $ 36,596 | $ 64,190 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 39,599 | 41,088 |
Deferred income tax provision | 5,179 | 3,524 |
Non-cash compensation charge | 1,616 | 1,031 |
Gains on disposals of assets | 1,194 | 456 |
Provision for loss on receivables | 91 | 154 |
Fair value adjustment of contingent consideration | -- | (3,938) |
Other, net | 297 | (267) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (8,130) | (20,587) |
Inventories | 6,141 | (4,422) |
Accounts payable and accrued liabilities | 9,436 | (21,149) |
Taxes payable | (6,399) | (5,790) |
Other current assets and liabilities, net | 5,093 | 5,137 |
Net cash flows provided by operating activities | 90,713 | 59,427 |
Cash flows from investing activities: | ||
Capital expenditures, including capitalized interest | (63,525) | (69,916) |
Proceeds from disposition of property, plant and equipment | 230 | 1,242 |
Other, net | -- | 2 |
Net cash flows used in investing activities | (63,295) | (68,672) |
Cash flows from financing activities: | ||
Revolving credit borrowings and (repayments), net | -- | (29,219) |
Term loan repayments | -- | (2,526) |
Contributions from (distributions to) |
20,193 | 41,189 |
Net cash flows used in financing activities | 20,193 | 9,444 |
Effect of exchange rate changes on cash | (6,988) | (5,433) |
Net change in cash and cash equivalents | 40,623 | (5,234) |
Cash and cash equivalents, beginning of period | 224,128 | 161,396 |
Cash and cash equivalents, end of period | $ 264,751 | $ 156,162 |
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Segment Data | ||
(in thousands) | ||
(unaudited) | ||
Three Months Ended |
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2014 | 2013 | |
Revenues | ||
Canadian | 180,324 | 207,651 |
Australian | 55,464 | 67,729 |
U.S. | 17,011 | 19,158 |
Total revenues |
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EBITDA (A) | ||
Canadian |
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Australian | 30,804 | 36,758 |
U.S. | 4,696 | 8,492 |
Stand-alone adjustments and eliminations | (4,978) | (4,215) |
Total EBITDA |
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Operating income / (loss) | ||
Canadian | 42,063 | 70,768 |
Australian | 15,843 | 19,566 |
U.S. | (105) | 4,608 |
Stand-alone adjustments and eliminations | (4,941) | (4,181) |
Total operating income |
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Additional Quarterly Segment and Operating Data | ||
(unaudited) | ||
Three Months Ended |
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2014 | 2013 | |
Supplemental operating data - Canadian Segment | ||
Lodge revenues ($ in thousands) |
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Mobile, open camp and product revenues ($ in thousands) | 57,936 | 61,653 |
Total Canadian revenues ($ in thousands) |
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Average available lodge rooms | 11,868 | 11,298 |
Lodge revenues per available room |
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Occupancy in lodges (1) | 90% | 92% |
Supplemental operating data - Australian Segment | ||
Village revenues ($ in thousands) |
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Average available village rooms | 9,262 | 8,711 |
Village revenues per available room |
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Occupancy in villages (1) | 76% | 84% |
(1) Occupancy represents total billed days divided by rentable days. Rentable days excludes staff rooms and out of service rooms.
(A) The term EBITDA consists of net income plus interest, taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding our ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates. The Company uses EBITDA to compare and to monitor the performance of its business segments to other comparable public companies and as a benchmark for the award of incentive compensation under its annual incentive compensation plan. The following table sets forth a reconciliation of EBITDA to net income, which is the most directly comparable measure of financial performance calculated under generally accepted accounting principles.
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Reconciliation of GAAP to Non-GAAP Financial Information | ||
(in thousands) | ||
(unaudited) | ||
Three Months Ended |
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2014 | 2013 | |
Net income from continuing operations |
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Income tax provision | 12,311 | 20,572 |
Depreciation and amortization | 39,599 | 41,088 |
Interest income | (939) | (572) |
Interest expense | 5,130 | 6,981 |
EBITDA |
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CONTACT: Company Contact:Source:Frank C. Steininger Civeo Corporation Senior Vice President and Chief Financial Officer 713-510-2400
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